After the Hype, eCommerce Payments Grow Up

June 17-18, 2003
Federal Reserve Bank of Philadelphia

E-payments were a major part of the Internet hype of the mid-1990s. As we view the scene today, we find the landscape littered with the many failed dot-com institutions, including some once very hot e-payment innovators. Nonetheless, the core of electronic payments has emerged as a significant and fast-growing sector of the financial services industry. Displaced by an expanding range of electronic payment solutions, we now know that the long predicted decline in check usage in this country began sometime in the late 1990s.

This Workshop Forum agenda is structured to recognize the industry's growth and increasing maturity. Topics to be discussed in the changing payments landscape include convergence of payment system elements, impact on traditional payment structures, changing consumer payment behaviors, as well as innovations in delivery and risk management practices.

This is the second annual jointly sponsored event by the Federal Reserve Bank of Philadelphia's Payment Cards Center and the Electronic Funds Transfer Association's Electronic Commerce Payments Council. These events are intended to bring together industry and Federal Reserve perspectives in a discussion of e-commerce and related e-payment developments.

Rich Oliver will open the meeting with an overview of the diminishing role of checks, the shift to electronic payments, and the impact these trends are likely to have on retail payment systems. The session will address anticipated responses to this shift within the Fed and review the risks and opportunities of alternative strategies.

9:45 a.m.

The Industry's Changing View of the Payments Landscape

Michael Mulhern, Partner, First Annapolis

Michael Mulhern will discuss the current payments industry landscape, trends, changes, and the resulting challenges and opportunities for financial institutions. Mike will share many of the steps that financial institutions are taking to ensure they have a holistic view of payments as they seek to understand, measure, and manage the business at an enterprise level.

10:30 a.m.

Break

11:00 a.m.

Fed Survey on Electronic Payments

Susan Foley, Senior Financial Services Analyst, Board of Governors

In light of recent innovations and anticipated developments in payments systems, the Federal Reserve's Payments System Development Committee asked Federal Reserve staff to seek the view of private-sector organizations about longer-term payment system developments in general and the key issues that will shape the future of clearing and settlement systems in particular. Susan Foley will present highlights of these interviews and discuss areas in which, in the committee's opinion, the Federal Reserve and other organizations may foster or help reduce barriers to innovation.

11:45 a.m.

Consumer Behavior and Payment Trends in the United States

Elizabeth Klee, Economist, Board of Governors

This session will focus on Beth Klee's recent research examining changes in consumer payment behavior, especially with respect to electronic payments. The underlying analysis is based on data from the Survey of Consumer Finances, conducted every three years by the Board of Governors.

12:30 p.m.

E-Commerce at the U.S. Postal Service

Debbie Rouff, Payment Technologies Specialist, USPS

The USPS has been exploring e-commerce applications since 1997, resulting in volumes that are now growing by "leaps and bounds." Payment Technologies Specialist Debbie Rouff will explore how the USPS is using its web site to bring its products to every man, woman, and child in the U.S. and share its experience regarding what works and what doesn't in e-commerce delivery.

1:00 p.m.

Lunch

2:00 p.m.

Mobile Commerce in the U.S. and Europe

Dom Morea, Senior Vice President, Encorus Technologies

Dom Morea will review the efforts of Encorus Technologies, a leading provider of mobile payment solutions, in expanding mobile commerce in Europe and views on future trends in the marketplace involving digital micro- and macropayments. He'll also explore the nascent mobile commerce market in the U.S. and discuss the future direction of mobile payments here along with likely factors for success.

2:45 p.m.

Online Fraud: The Stakes Are Rising and Authentication Update

Steve Klebe, Vice President, CyberSource Corporation

In this session, Steve Klebe will review the adoption, challenges, and lessons learned from the recent Visa rule change shifting liability for online purchases secured by Verified by Visa and from MasterCard's adoption of 3D Secure protocol. In addition, Steve will discuss the role of behavioral fraud screening in conjunction with payer authentication initiatives.